Another Case In Point

I found a another great example of why patents do not matter at the
small, and even large business level. The article can be read in its
entirety here:

http://moneycentral.msn.com/content/Savinganddebt/Savemoney/P103041.as
p?GT1=6113


It is actually part of a larger MSN Special titled "Entrepreneurial
Excellence" which focuse on innovation and I recommend that you all
check it out here:

http://special.msn.com/msnbc/entrepreneurexcellence.armx


Although there a quite a few lessons that can be learned from this
story and ones like it, I think we should all pay special attention
to the 5th paragraph. Also, remember that you are reading about a
$200 million dollar a year company.

Enjoy!

Tom



When most kids are seniors in college, they're writing résumés
and cruising toward graduation. Not Kevin Plank. Nine years ago, when
Plank was in his last year at the University of Maryland, he began
developing sportswear that now outfits most professional and college
sports teams and makes a fashion statement on high-school playing
fields. As the founder of Under Armour, Plank, 32, presides over a
Baltimore company that employs 450 people and grossed more than $200
million last year.

Plank owes a debt to sweat. As a player on the Maryland Terrapins'
football team, he wore a cotton undershirt that turned into a soggy
liability during games. Already an entrepreneur (he was running a
thriving floral-delivery service out of his dorm), Plank began
searching fabric stores for a lightweight material that would fit
snugly, wick away moisture and replace the undershirt.

Once he had found the perfect fabric, Plank paid a tailor $400 to
come up with several prototypes and asked his teammates to try them
out. "They said the shirt was great for football -- and baseball and
lacrosse, too," says Plank. "I realized this wasn't just a shirt but
a marketing opportunity."

Plank hit New York City's garment district and returned with enough
fabric to make 500 undershirts, which he promoted to players on major
college and NFL teams. "I would ask them to try this product, and if
they liked it to give one to the guy in the next locker," says Plank.
Eventually, teams on both sides of the field were wearing
Plank's "compression apparel" -- and showing it off on TV.

After graduation, Plank raised start-up money by maxing out his
credit cards to the tune of $40,000. He tried to patent his idea, but
gave up after racking up $7,000 in legal fees. For the next several
years he took no salary from the business, and he lived and worked
rent-free in a house owned by his grandmother. He later got a
$250,000 loan from the Small Business Administration and used almost
half of it to repay debts.

Under Armour is now the official supplier of compression apparel to
Major League Baseball and Major League Soccer, and its garments are
worn by about 30 NFL teams and nearly 100 Division I-A college
football teams. It was a high-stakes gamble for a kid barely out of
college, but Plank thinks youth worked in his favor. "When you're 22
or 23, there's no better time to take a big risk. Sometimes it pays
off." In his case, the rewards have included buying a Cadillac at age
26 and gaining VIP access to major sporting events, such as the Super
Bowl. "For someone who is passionate about sports, that's a big part
of my payoff."

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